Treat Buying a Home like a Business Transaction to Minimize Stress
We have a guest blogger on Direct Talk today - Amy Gretenstein with The Boone Team at Real Estate by Design.
Almost everyone buys a house/townhouse/condo at some point in their life and the process can be extremely intimidating. There are emotions, sentiments, gut-wrenching debt, and all the stress you can imagine piling onto buyers and sellers as they pack up everything they own and move it across town or just next door. There is a reason people joke that I am secretly a marriage counselor and life coach.
But what many people fail to fully grasp is that buying and selling real estate is a business transaction. If more people could put this personal process into a business frame of mind, they might survive it better and actually enjoy it.
As an entrepreneur, you build up your arsenal of resources: you have your business attorney (hi Donna!), your CPA, your bookkeeper, your office manager/administrator, and your employees among a few. In a real estate transaction, it’s critical you also have your resources. The best resource is a well-connected real estate agent who spends their time developing trusting relationships with inspectors, contractors, handymen, electricians, plumbers, lenders, engineers, real estate attorneys, and more.
Handy homeowners are great after the purchase, but unless you work on homes for a profession or maintain professional certifications, leave it to the pros in your transaction. There’s plenty of time to show off your mad skills over the next 30 years of your mortgage.
Return on Investment
Owning a home is an investment and while the laws are ever changing with regards to deductions, it’s important you work with a knowledgeable accountant who can help you spend wisely on improvements and repairs on your home. And again, lean on your agent to check in with you every few years to advise on what renovations are seeing returns on investment and what the current trends are favoring.
Spend Money to Make Money
During the transaction when your Realtor suggests spending money on an attorney ($1000), a home inspection ($400), radon gas inspection ($125), well/septic/water inspection ($500), pest inspection ($75), engineer foundation inspection ($400), a survey ($450), roof/HVAC/fireplace (each range from free to $250/ea.), and title insurance (based on the purchase price), your head may spin. Your gut reaction may be: Nope!
In business, there are foundational or organizational expenses we cannot avoid. These home-buying expenses are also unavoidable. Know what you’re buying *before* you buy it!
Additionally, a pre-list home inspection can inform a seller what conditional items could be a part of negotiations and help better price your home. Sellers can choose to make repairs or price the home efficiently to sell as-is. A home with little-to-no maintenance repairs will go for top dollar in any selling condition. Would you spend $400 to make possibly thousands more profit? That feels like Business 101 to me!
Putting your business hat on while you buy a home or sell a home can help you manage the stress of upheaving your life. Listen to the support you’ve surrounded yourself with and lean on the professionals to help you manage the process. It’s just good business!
As a family business, we are passionate about navigating our clients through the real estate transaction. When it comes to home buying and selling, it might be business but to The Boone Team it’s also family.
The Boone Team at Real Estate by Design 5011 Southpark Drive, Suite 250 Durham NC 27713
Website: The Boone Team